Strengthening Cybersecurity and Insurability – Part 1
How Strengthening Cybersecurity Helps Increase Insurability
Organisations face the ever-present threat of cyber breaches and the importance of proactive measures to safeguard sensitive data and assets is obvious. Two essential tools that organisations should consider are an incident response plan and cyber insurance. In this article, based on information from specialist security operations provider Arctic Wolf, we cover how, by implementing a robust incident response plan and obtaining adequate cyber insurance coverage, organisations can not only effectively respond to breaches but also streamline the insurance process, ultimately improving their insurability.
Managing the security controls is vital when implementing an incident response plan. However, an incident response plan is more than a checklist—it is a dynamic and living document that requires regular testing and adjustments based on evolving security threats and business needs. Key components of an effective incident response plan include:
The combination of an incident response plan and cyber insurance creates a comprehensive approach to risk mitigation and transfer. An incident response plan helps prevent minor incidents from escalating into major breaches, while cyber insurance transfers a portion of the risk to the insurer, aiding faster recovery, particularly from a business and financial standpoint. Additionally, the effective security controls required for cyber insurance and incident response plans significantly reduce the likelihood of incidents occurring in the first place. Organisations should recognise that relying solely on one tool is insufficient. Instead, they should leverage the synergy between incident response planning and cyber insurance to ensure comprehensive risk management.
Implementing a comprehensive incident response plan and incorporating the recommended security controls can lead to substantial cost savings in the event of a cyber incident. According to the IBM Cost of a Data Breach Report 2022, proper incident response planning and testing can reduce incident response (IR) costs by up to 45%.
By having a well-prepared incident response plan in place, organisations can minimise the impact of a breach, respond swiftly and effectively, and limit the financial and reputational damages. Here are some potential cost savings that can be realised through the implementation of these solutions:
While the exact cost savings may vary depending on the organisation’s size, industry, and the nature of the incident, implementing these solutions can significantly reduce the financial burden associated with cyber incidents. It is important to note that cost savings are not limited to immediate financial implications but also extend to long-term business viability and resilience in an increasingly interconnected and threat-laden digital landscape.
How Strengthening Cybersecurity Helps Increase Insurability
In today's rapidly evolving digital landscape, traditional cyber security measures often fall short in addressing sophisticated threats. Managed IT...